ESIC/EPF

ESIC & EPF Services

Employee Estate Insurance Corporation

Employee estate Insurance Corporation abbreviated as ESIC, it is social security and health scheme which covers sickness, disablement or death issues of the employee and there family also; it is in the welfare of employee for Indian workers. ESIC comes under Employees’ State Insurance Act, 1948; it is founded in 24 February 1952 by the Ministry of Labor and Employment, Government of India.

ESIC Registration Applicability:

The ESIC scheme is applicable to all factories and other establishments as defined in the Act 1948, these things are covered under the scheme:

1. Any organization which has 10 or more than 10 employee it comes under ESIC and the limit for 20 employees in Maharashtra and Chandigarh.

2. The Wages/Salary limit for the same is Rs.21,000/- per month (Twenty One Thousand), the earlier limit for the same is Rs.15000/- and it has been changed to Rs.21,000/- from 01-January- 2017.

3. In the case of employee disability the wages/salary limit is Rs.25,000/- (Twenty Five Thousand) per month.

ESIC contribution rates:

ESIC

The ESIC contribution rates has reduced w.e.f 01-July-2019, 6.50 % to 4%.

Benefits of ESIC Services:

  • Medical Benefit: ESIC covers of individual medical expenses by provide reasonable medical facility; it’s effective from the date of employment.
  • Disability Benefit: In case of employee permanent disablement or injury, ESIC ensures the employee paid their wages or salary.
  • Maternity Benefit: ESIC provides a total of 100% of the average daily wages for a period of to 26 weeks from the time of going into labor and 6 weeks in case of a miscarriage. 12 weeks of pay is provided in the case of an adoption.
  • Sickness benefit: 70% of the salary is getting paid at the time of sickness the maximum period is 91 days for the same.
  • Unemployment Allowance: ESIC provide monthly allowance, for a maximum period 24 month due to involuntary loss of employment.
  • Dependents Benefit: In case employee death due to an injury at the place of employment, ESIC will provide monthly payments among the surviving dependents.

ESIC Registration:

The following documents are required for ESIC Registration:

  • Certificate of Registration of the P.L company
  • License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act
  • Employees Details with their monthly compensation
  • List of partners or directors of the company or establishment
  • The company’s bank statements
  • Address proof and PAN Card of the business establishment or company

Employee Provident Fund

The Employee provident fund abbreviated as EPF, it is social security scheme providing a monetary benefit to all salaried individuals after their retirement, or before retirement for financial emergency it comes under the Employees’ Provident Funds and Miscellaneous Act, 1952.

EPF Registration Applicability:

  1. Any organization having more than 20 employees mandatory to take EPF Registration.
  2. The Maximum limit for salary is Rs.15,000/- (Fifteen thousand) after the EPF Deposit is voluntary basis.

EPF contribution rates:

EPF

Benefits of EPF Services:

 It helps in saving money for the long term period.
 It helps an employee financially during an emergency.
 Your company or employer’s contribution to the EPF account is free from taxes.
 Provide the handsome amount of money at the time of employee retirement.
 Provide the good interest rate; the current interest rate is 8.65%.

EPF Registration:

The following documents are required for EPF Registration:

  • Certificate of Registration of the P.L Company.
  • License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act.
  • Employees Details with their monthly compensation.
  • List of partners or directors of the company or establishment.
  • The company’s bank statements.
  • Address proof and PAN Card of the business establishment or company
  • Consent letter of the company
  • Previous EPF No if have